The Uttar Pradesh government has approved the Excise Policy for the fiscal year 2025-26, with several key changes aimed at improving regulation, boosting revenue, and enhancing consumer safety.
The policy was approved at a Cabinet meeting led by Chief Minister Yogi Adityanath.
In the meeting, the proposal to hold the legislature session from February 18 was also approved. The budget is set to be placed in both Houses on February 19.
Excise Minister Nitin Agarwal told reporters at Lok Bhavan on Thursday that liquor shop licences will now be allotted through an e-lottery system, eliminating the renewal option for old licences this year. However, the renewal option will be available again in 2026-27. The government has also set a revenue target of Rs 55,000 crore, which is Rs 4,000 crore more than the previous financial year.
Additionally, the new policy includes a restriction preventing any individual, firm, or company from holding more than two licences.
Reports said that another major change is the introduction of composite shops, where beer, liquor, and wine will be sold from a single counter, replacing the previous system that required separate licences for beer. However, on-premises consumption will not be allowed at these outlets. The policy also includes a price hike for alcohol, expected to be implemented when the policy takes effect.
Another significant change is the restriction on renewing licences for premium retail shops until the next fiscal year, with an annual fee of Rs 25 lakh for renewal. To prevent monopolisation, no individual, firm, or company will be permitted to hold more than two licences, reports said.
The policy places limitations on premium brand liquor outlets, prohibiting them from being located in multiplexes within malls, though they will still be allowed in major areas like airports, metro stations, and railway stations with a no-objection certificate.
Additionally, the procedure for obtaining personal home licences, allowing individuals to purchase and possess liquor beyond the standard retail limit, has been simplified.
The fee for this licence is Rs 11,000, with an equal security deposit, and applicants must meet specific income tax criteria. In a move to improve safety, the policy mandates the sale of country liquor in aseptic brick packs, reducing the risk of contamination.
The government had also categorised processing fees into five slabs, Agarwal said.
The first category, the minister said, covers areas under the development authorities of Gautam Buddh Nagar, Ghaziabad, Lucknow, Agra, Varanasi, Prayagraj, Gorakhpur, and Kanpur, including a 3-kilometre radius around their municipal limits.
The processing fee for country liquor shops in these areas has been fixed at Rs 65,000, composite shops at Rs 90,000, model shops at Rs 1 lakh, and cannabis shops at Rs 25,000, the minister said.
The second category includes large cities not covered in the first category, along with a 3 km surrounding area. Fees for country liquor shops here will be Rs 60,000, composite shops Rs 85,000, model shops Rs 90,000 and cannabis shops Rs 25,000, he said.
The third category covers municipal areas and their 3-km radius. Fees for country, composite, model and cannabis shops will be Rs 50,000, Rs 75,000 and Rs 80,000 and Rs 25,000, respectively.
The fourth category included Nagar Panchayat areas and their 3-km radius. Fees for country, composite, model and cannabis shops will be Rs 45,000, Rs 65,000 and Rs 70,000 and Rs 25,000 respectively.
The fifth category covers rural areas. Fees for country, composite, model and cannabis shops will be Rs 40,000, Rs 55,000 and Rs 60,000 and Rs 25,000, respectively, he said. The government has retained the existing operating hours for liquor shops, which will remain open from 10 am to 10 pm — a 12-hour limit that has been in place for several years, the minister said.
He said that the government had introduced 90ml bottles in the regular category of foreign liquor. In the premium segment, 60ml and 90ml bottles will now be available.
Country liquor, previously sold in glass bottles, will now be mandatorily packaged in tetra packs to enhance safety and prevent adulteration.
The Minimum Guarantee Quota (MGQ) for country liquor has been increased by 10 per cent, consistent with the previous year's policy, Agarwal said. The licence fee per bulk litre has been increased from Rs 254 to Rs 260, the minister said.
“The excise policy aims to promote farmers engaged in fruit-based liquor production, ensuring a dedicated liquor shop for their products at every district headquarters. Licensing fees for such shops have been set at Rs 50,000 for divisional and district headquarters and Rs 30,000 for other district locations,” he said.
UP 112 to get 469
new vehicles
To ensure the seamless operation of UP 112, the state’s emergency response system, the Cabinet has approved the replacement of 469 old vehicles with new ones. This initiative will involve an investment of over Rs 43 crore and include both four-wheeler and two-wheeler vehicles to enhance the efficiency of the service.
Teachers to get tablets
for digital learning
To promote digital learning, teachers in council schools will be provided with high-specification tablets. The additional cost for these upgraded devices will be borne by the state government, apart from the funds approved by the Government of India. While the Central government has sanctioned Rs 51.66 crore for tablet procurement, the Uttar Pradesh government will contribute Rs 14.68 crore to ensure the purchase of higher-specification tablets for better student learning outcomes.
KGMU Trauma Centre
to expand to 500 beds
In response to the growing number of patients, King George’s Medical University (KGMU), Lucknow, will expand its Trauma Centre from 460 to 500 beds. Additionally, a Patient Utility Complex will be constructed. The total cost of the project will be Rs 272.97 crore. This expansion aims to provide comprehensive surgical and emergency care under one roof, ensuring better treatment facilities for critically injured patients. Approval was given to the proposal to amend Sanjay Gandhi Postgraduate Medical Science Institute Act. This will increase the tenure of the current director Dr RK Dhiman.
Lease of bus stations being built
on PPP model increased
The lease period of the firms contracted for 23 major bus stations being developed on the PPP model by Uttar Pradesh State Road Transport Corporation has been increased to 90 years. Earlier, this period was shorter, which led to many firms not showing interest in working. Only after this, UPSRTC had prepared this proposal. Two years ago, there was an agreement to develop 23 bus stations as modern bus terminals on the PPP model. In the first phase, only 11 bus stations were allowed to be developed on the PPP model. After this, 12 more bus stations were included in this category. After this, Prayagraj, Lucknow, Meerut, Ghaziabad, Agra, Aligarh, Ayodhya, Bulandshahr, Gorakhpur, Bareilly, Varanasi, Mirzapur, Rae Bareli, Mathura, Kanpur and Hapur were identified as major districts. Instructions have already been given to the DMs to make alternative arrangements for the operation of buses during the period of construction of bus stations.
These bus stations will have many facilities including modern passenger facilities, retail outlets, multiplexes etc. This will provide more facilities to the passengers at the bus stations. Along with this, the proposal to form a new development authority in Shahjahanpur has also been approved. Shahjahanpur Development Authority will have about 32 villages. Approval was also given to the proposal to distribute the Basic Education department among the council schools of Uttar Pradesh. Approval was also given to set up a new greenfield dairy plant of 30,000 litres per day capacity in Mathura.